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Sounds like you have a video driver issue. See if you can boot from your "Dell Resource" CD or any other bootable CD disk.Power on the computer and tap the F12 key to get to the "Boot Selection Menu". Insert the "Resource CD" into the CD-ROM drive. Select "Boot from CD/DVD drive" from the selection menu. If the computer boots from the CD drive then you Operating System Software is the problem.

Are you Sure that the computer model is Dell Optiplex GX260? Because looking at the manual diagnostic lights are found at the back. and the fault can be determine If the ABCD lights are yellow or green. But None the less 2/3 Depicts a hard drive problem while 3/4 depicts a memory issue.

Hard drive Issue:

1. Disconnect all non essential cables at the back of the computer. Leave only the mouse, monitor and keyboard. See if it boots up normally
2. If it boot up fine. try plugging one peripheral at a time until you find which peripheral causes the computer not to POST (Power on Self Test)
3. If you still getting problems, Follow these steps
4. To access the BIOS you must tap F2 or delete key upon turning the computer on5. Try to look for the Hard drive if it is detected by BIOS if not got to step 96. Look for Boot Sequence or anything that is associated Boot7. The Order boot of must be 1st: DVD Drive, 2nd: Hard drive, 3rd: Network etc.8. Save the changes and Restart9. If you still get the same message I suggest that you take out the hard drive and put it back in until it is detected in BIOS10. If Step 9 did not work I think you need to replace the Hard drive

Memory Issue:

1. Open the chassis of the computer2. Try taking out all memory modules3. Rub the metal contacts of all memory with a pencil eraser4. If more than one memory. Put one memory first and turn the computer on. If it turned on add another memory and turn the computer on. Repeat these steps until you determine which memory is faulty or all memory module contacts needs cleaning

Sounds like the boot order in the bios is wrong, go into the bios, change and SAVE it, dont just exit without saving.
If you still get problems, get a new cmos battery,
I always have cd/dvd rom as 1st boot then Hard drive, and disable other boot devices

Insert your System CD (the one with the operating system on it). Boot up the computer and press F12 during the couple of seconds at the very beginning of the boot sequence to access the boot menu. You'll want to specify the CD-ROM as your 1st boot device. The system will boot from the system CD and you just follow the prompts to reinstall the operating system. Just realize, this will restore your computer to "out of the box" condition. You'll have to update Windows XP several times as well as your drivers. Also, ALL data that was on the computer will be lost forever.

Seems to be a very common problem with this screen. Im taking one apart as we speak to try to discover the problem. In the mean time - check that the Power Input isnt loose, and you can wiggle it around. Usually means the power is arcing onto the board

I'm not sure right off hand what the WRIT means. But other articles online seem to think that you should hit F2 at boot and check the Boot Order. One guy set it to CD and booted a CD (a bootable one) fine. I would make sure it set to the first Hard Drive. He also said something about: went to the "event log" section and cleared the last event (actually the only one showing). I saved the settings, then booted up again and this time it booted up normally.

* Anyway new hardware external or internal would be 1st suspect in this kind of thing. One person had problems after adding a new printer that had a memory card in it. Apparently the Dell tried to boot from the memory card.